What to Make of the Great Gold Revaluation
Four times in U.S. history – in 1839, 1933, 1971, and 1973 – America set a new official value for an ounce of gold.
And today, a new gold revaluation could be on the way...
Right now, gold is valued on the books at just $42.22 per ounce. That was the government's official price for gold in 1973... even though gold is actually worth around $4,000 an ounce today on the open market.
And it could be revalued to anywhere from around $3,000 an ounce up to a shocking $27,533 an ounce... practically overnight.
Yes, you heard that right.
That's how much currency experts like Jim Rickards predict.
Rickards has testified before the House of Representatives, and he has advised the U.S. Department of Defense, the U.S. intelligence community, and major hedge funds on global financial issues.
Now, I don't want to get too deep in the weeds here, but let me share how he came to this number...
First, Rickards took the U.S. M1 money supply – around $18 trillion at the time of his prediction – and the U.S. gold reserves, which total 261.5 million ounces. Then, he assumed a 40% gold backing, a historical norm from the early 20th-century U.S. gold standard... 40% of the $18 trillion money supply equals $7.2 trillion.
And $7.2 trillion divided by 261.5 million ounces equals $27,533 per ounce.
Luke Gromen, a respected institutional adviser and analyst, calculates it differently... Yet he also predicts gold will jump to around $20,000 an ounce.
This revaluation of gold would mean the U.S. government essentially naming a new price for gold... It would flush the Treasury's general account – essentially the government's checking account – with billions of dollars in no-strings-attached liquidity.
For example, if gold were revalued from its "book value" of $42.22 to somewhere near $3,000... that would create up to $900 billion in liquidity.
This would achieve the White House's goal of weakening the dollar in the process, too.
And look...
Whether it's revalued at $3,000... $20,000... or $27,000... the point is clear: Buy gold now.
In a recent presentation, I went through all the details on what's happening to gold, why you haven't missed your chance to add this chaos hedge to your portfolio, and how you should invest in gold today.
Now, let's get to this week's Q&A... And as always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.
Asset Allocation vs. Diversification
Q: I'm a little confused... How's asset allocation different from diversification? Are they the same? – J.J.
A: Thanks for your question, J.J. You might hear lots of people use these terms interchangeably. But there are important differences to know if you want to position your nest egg for maximum growth and minimum risk...
Asset allocation is how you balance your wealth among stocks, bonds, cash, real estate, commodities, and other investments in your portfolio. In 2023, I shared an example asset-allocation model with my Retirement Millionaire subscribers...
How your own allocation should look depends on factors like your risk tolerance and years to retirement, as well as the current economic and market environment. But this model is a good place to start if you've never considered asset allocation before.
Diversification is where you get more granular with your investments...
When you're investing in stocks, you don't want to put all of your portfolio into one stock, one sector, or even one country.
Diversification protects us from the surprise of a single bad earnings report, lawsuit, CEO defection, cyberattack, regional economic collapse, or any of the dozens of other unpredictable events that can ding a stock price.
Some sectors, for example, thrive during bear markets. Utilities, consumer staples, and health care stocks offer opportunities to safeguard your wealth when overall markets are down. But technology, energy, and consumer-discretionary stocks often get hit hard during a bear market.
That's why I recommend you never put more than 4% to 5% of your portfolio into a single stock or 5% to 10% of your investments in a closed-end fund. If the stock is especially risky – what I call a "play money" investment – stick to around 1%. And when you buy a lot of different stocks or funds, make sure they complement each other so they're less likely to all fall at the same time.
What We're Reading...
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Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
November 7, 2025